Government sponsored private loans available for commercial property owners to invest in environmentally sustainable property projects and improvements (called PACE financing in the residential market). The loan is repaid as a tax assessment. The lien on the property has super lien priority.

The loan may be allocated to projects such as:

C-PACE programs are authorized under state statutes. In some states, mortgage lenders are prohibited by statute from denying a property owner the right to obtain C-PACE financing.

For guidance on C-PACE financing considerations for commercial leases, see Practice Note, C-PACE Financing: Key Considerations for Landlords and Tenants (Commercial Real Estate).